Tenancy deposit schemes explained

In England, a tenancy deposit is usually limited to five weeks' worth of rent or six weeks' if the cost of the rent is over £50,000 a year.

In Wales and Northern Ireland there isn't a formal cap but renters usually pay one month's rent as a tenancy deposit. 

In Scotland, the limit is no more than two months' rent.

How is my rental deposit protected?

By law, anyone renting through an Assured Shorthold Tenancy in England and Wales (this will apply to most people who rent their property) should have their deposit protected in a deposit protection scheme.

Which tenancy deposit protection scheme should my landlord use?

There are three deposit protection schemes in England and Wales:

• Deposit Protection Service
• MyDeposits
• Tenancy Deposit Scheme

Your landlord will decide which scheme to use, but your deposit should be equally protected whichever one they choose.

Scotland and Northern Ireland operate separate schemes, but they work in the same way as detailed below. You can find out more on the Scottish and Northern Irish government websites.

How tenancy deposit protection schemes work

Your tenancy agreement should include information about which scheme your landlord or letting agent is using.

Within 30 days of paying your deposit, your landlord should confirm the following information in writing:

• the address of the rented property
• how much deposit you've paid
• how the deposit is protected
• the name and contact details of the Tenancy Deposit Protection (TDP) scheme and its
  dispute resolution service
• their (or the letting agency's) name and contact details
• the name and contact details of any third party that's paid the deposit
• why they would keep some or all of the deposit
• how to apply to get the deposit back
• what to do if you can't get hold of the landlord at the end of the tenancy
• what to do if there's a dispute over the deposit.

Your rights if a landlord doesn't protect your deposit

If your landlord does not protect your deposit using a recognised scheme, or does not provide you with the required information, you could take them to court.

However, before taking court action you should first write to your landlord to give them the chance to protect the deposit and/or to provide the information.

How to get your tenancy deposit back

At the end of a tenancy, provided you've stuck to the terms of your tenancy agreement, you haven't done any damage to the property and you've paid all your rent and bills, you should be entitled to your full deposit back.

If you haven't met all of these terms, your landlord may wish to withhold some or all of your deposit to cover any costs they incur. If they need to repair damage you have made to the property, for example, you might not get your deposit back.

Your landlord must return your deposit within 10 days of you both agreeing how much you’ll get back.

What happens to your deposit if there is a dispute?

As well as protecting your money during your tenancy, deposit protection schemes can help resolve disputes that arise between you and your landlord.

For example, if you think your landlord wants to withhold an unreasonably high amount of your deposit to cover their costs, you can complain to the scheme's dispute resolution service.

It will then investigate the facts and determine the dispute. If you use the dispute resolution service, you and your landlord must do what it recommends - its decision is generally final.

Again, once you and your landlord have agreed how much deposit you will be getting back, it must be returned to you within 10 days.

• Find out more: what are my rights when renting from a private landlord?